Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares Investor update

Hello everybody. Welcome to our 2026 roadmap presentation. Thank you very much for coming here kind of in the last minute and also in August. I am just going to flash this in front of you to remind you there will be forward-looking statements that are accurate only of the date given out. The disclaimers will be provided. The other thing is this slide presentation will be available on our website at 4:15, so no need to frantically take screenshots. You can read the disclaimers at 4:15 if you so desire. I think with that, I'd like to invite up Christian.

No claps? There it is.

Just got to warm up the audience, that's all. Thank you. Do I use this or not?

Your mic. Thank you, Brett, and welcome everyone.

Really excited today to be here to tell you about our roadmap particularly, and a few other things, both hardware and software roadmaps. It should be a lot of fun, and particularly looking forward to hearing any questions you may have as well. We've got a really good turnout, which is awesome to see. Thank you everyone for making the trip today. Speakers today, myself, Raf and Michael. We always like to start off with our mission. It's guided us from very early days, nearly from day one, and it's to build quantum computers that are useful and available to people everywhere. We often come back to this because a lot goes on during the day, during the weeks and months, and you have to remain focused. That's one of the characteristics of Xanadu.

We're focused on building a large-scale quantum computer, so fundamentally we're a quantum hardware company, really exemplified by our use of photonics to build our quantum computer. It's useful through the fact that we're building a large-scale quantum computer. All the stuff that you hear about, fault tolerance, error correction, many logical qubits, and also the cloud-deployed nature, where PennyLane is also wrapping together everything here. Some of the slides, including this one, is what we presented, I think 5 months ago now at our first Analyst Day. A lot of that, obviously the past stuff, has remained the same. I'll just go over it fairly quickly. The hardware is on top, software is on the bottom. First chip fabricated in 2017, and then we had our X-series, Borealis, and then also the quantum supremacy on that one, and then Aurora.

Also our first on-chip photonic GKP qubit. GKP qubits, don't worry about the name too much, it just means Xanadu's photonic qubit. Something you may have seen on Friday, along with the CAD 195 million announcement from the Canadian government, is Inception. Inception is a nearly 160,000 sq ft Toronto manufacturing facility that was announced I guess 3 days ago, and we'll talk more about that. From a software side of things, PennyLane, obviously a big marker there, was released 8 years ago. Launched the world's first commercial photonic platform, so you could access quantum computers over the cloud. You'll see some of the next stuff that we'll talk about in the coming slides, including re-architecturing PennyLane for scale. Very important thing. You just can't have PennyLane from day one accessing and building out scalable quantum computers.

This was announced, this is converted into USD, but it was CAD 195 million from the federal government for our project that we call Project OPTIMISM. It was executed a few days ago, announced on Friday. We had one of the main ministers, Minister Solomon for AI in Canada. He was there to announce this. Really excited about this. This is what we alluded to 5 months ago. This is part of the money. This is the federal side of things. Stay tuned for any announcements soon related to the provincial side of things. This one's announced first because it was in discussions initially. Use of proceeds to establish an advanced manufacturing facility. That's why we announced Inception, which I'll talk more about soon. The cool thing here in terms of finances, offsets a substantial portion of the capital for our next phase of development.

Okay, we have a track record. It's all about hardware in the quantum industry. It's all about our hardware roadmap, which we'll talk about. We're a photonic-based company, pros and cons of that coming up soon, which I'm sure you're all familiar with. If you check out this, 4 Nature papers in the last few years. This is our X-series, Borealis, which showed quantum supremacy. Aurora, which showed how to network quantum computers together. Remember, the goal is to have smaller, well-performant quantum computers, and you have hundreds of them and network them together. This is the only demonstration, it was published in Nature by any company, which shows how to solve that in a scalable manner. Then the world's first demonstration on chip of our GKP qubit, our photonic qubit as well.

All of them, as mentioned, have made it into Nature. This is more of a reference point. If you were at our Analyst Day, our first one last time, this is the same slide here. We basically compare ourselves to other approaches. So you've got the photonic-based approaches, Xanadu's and other photonics, and you've got the electronic-based ones, which are the other 4 columns there. Pros and cons of each, I'll just quickly go through some highlights. We've demonstrated scalable interconnects, meaning we had 4 server racks that are networked together. Could have been 40 or could have been 400. We know how to do that at scale. The clock speed, that's something if you want to keep an eye out over the next year or 2, is going to matter more and more.

This is where photonics really demonstrates one of its extreme values, where we're orders of magnitude faster than a lot of the other approaches, which is really key. So one way to look at that is we benchmark. Let's say it took a year to solve one problem for the electronic-based approaches, whatever that problem is, just abstractly, 365 days to solve it. That's incredible because it would have taken hundreds of years to do it. So you're well ahead. Our computer, because of the clock speed and using photonics, would solve that same problem in 8 hours. So you go from a year, which is already the promise of quantum computing, but we're better in terms of that, significantly better. The intuition is we're operating at the speed of light. Logical overhead, this is a really key one.

One of the things that we decided to do today is go over some of the basics on how to think about quantum computing despite what we may hear in the media and from other companies. That is what you will see. You will see some basic things about why logical qubits are one important thing, but there are other important things. Hopefully, this helps in the education. Logical overhead is always a challenging one. For us, we believe it is on the order of 100 to 1, so 100 crappier physical qubits gives you one very good or logical qubit. Everyone, including us, to be fair, we try to be as balanced as possible. We have said we have got 12 logical qubits. We do, but the devil is in the details, and there are many other things to really care about, but it is still an important first step to get some logical qubits.

Others are saying, other companies are maybe saying 2 to 1 or 20 to 1 or something like that. I can categorically tell you that is not true. If it is true, then it also applies to us, meaning that maybe 20 to 1 is fine, but the logical error rate is disastrous. Or maybe it is only correcting a certain subset of errors. Basically, in order to make real money and in order to have significant customer adoption and impact, you need to have these numbers here. For us, we actually have roughly an order of magnitude better overhead there. Less overhead means less capital, means less hardware. That is a huge benefit for us. 2-qubit gate fidelity, we are up there with the best, I think tied in this case. Our 2-qubit gate is actually a beam splitter, one of the most famous optical elements ever.

That becomes our 2-qubit gate. Connectivity is all to all, along with a few of the others. Room temperature computation. This one is always challenging to hear. We actually have seen other decks by other competitors. I love looking through them and gauging where they are at, particularly the public companies. Everyone has these crosses and all of that, and we recommend everyone dive into this and see who has been truthful about it. Often you will see a cross near photonics, but they are talking about, say, PsiQuantum or someone else. But ours actually operates, computes is the right terminology, meaning the logic gates and the qubits and the measurements are all done at room temperature. I do not mean cryogenics, and I do not mean laser cooling either. Cryogenics operates around 10 to the minus 3.